What’ll be the Travel Per Diem Rates in 2025-US?

Planning your business trips for 2025? Knowing the per diem rates for key U.S. cities is essential to budget effectively and ensure smooth travel. “Per diem” is a Latin term meaning “for each day.” 

In business travel, per diem refers to the daily allowance provided to employees to cover expenses incurred while traveling for work. These expenses typically include lodging, meals, and incidental costs such as tips and minor fees. 

The General Services Administration (GSA) sets standard travel per diem rates for federal employees traveling within the continental United States (CONUS). Many private companies adopt these rates as benchmarks.

By aligning your travel policies with these allowances, you can keep costs predictable and stay compliant with federal guidelines.

Why Are Per Diem Rates Important?

Per diem rates serve several crucial functions:

• Budgeting: They help companies estimate travel expenses accurately, ensuring that travel budgets are realistic and sufficient.
• Reimbursement: For employees, travel per diem rates provide a clear guideline for reimbursable expenses, reducing the need to keep detailed receipts for every meal or minor expense.
• Tax Compliance: Adhering to GSA per diem rates ensures that reimbursements are non-taxable, simplifying tax reporting for both employers and employees.

Per Diem Rates for 2025

For Fiscal Year (FY) 2025, the GSA has updated the average per diem for business travel as follows:

Standard Lodging Rate: Increased from $107 to $110 per night.

Meals & Incidental Expenses (M&IE): The standard rate has risen from $59 to $68 per day. The M&IE tiers for non-standard areas (NSAs) have also been adjusted, now ranging from $68 to $92. 

It’s important to note that while a standard rate applies to most of CONUS, certain locations, known as NSAs, have higher rates due to increased living costs in those areas. For FY 2025, there are 296 NSAs with individual rates exceeding the standard. 

Travel Per Diem Rates for 2025 in Major U.S. Cities

Understanding per diem rates is crucial for effective business travel planning. These rates, established by the General Services Administration (GSA), dictate the daily allowances for lodging, meals, and incidental expenses for federal employees on official travel within the continental United States (CONUS). Many private companies also reference these rates to manage travel expenses.

For Fiscal Year (FY) 2025, the standard per diem rates are $110 for lodging and $68 for meals and incidental expenses (M&IE). However, certain high-cost areas, known as Non-Standard Areas (NSAs), have higher rates to account for increased living costs.

Below is a detailed breakdown of the average per diem for business travel for ten major U.S. business cities in FY 2025.

1. New York City, NY

New York City, encompassing the boroughs of Manhattan, Brooklyn, Queens, the Bronx, and Staten Island, is recognized as a high-cost area. Due to its significant living expenses, the per diem rates are elevated to accommodate travelers. 

For FY 2025, the lodging rate for New York City is set at $281 per night. The M&IE rate is $92 per day. These rates are applicable year-round, reflecting the city’s consistently high costs. It’s essential for travelers to plan accordingly, as accommodation and dining in New York City can be notably more expensive than in other regions. 

2. Los Angeles, CA

Los Angeles, known for its sprawling metropolis and entertainment industry, also falls under the category of high-cost areas. The travel per diem rates for FY 2025 reflect the city’s elevated living expenses. The lodging rate is $191 per night, while the M&IE rate is $86 per day. 

These rates are designed to cover the typical costs associated with business travel in Los Angeles, including accommodations in areas like downtown LA or near major business centers. Travelers should be mindful of the city’s vast geography, which can influence lodging prices and availability. 

3. Chicago, IL

Chicago, the economic hub of the Midwest, presents travelers with per diem rates that account for its status as a major business center. For FY 2025, the lodging rate is $194 per night, and the M&IE rate is $92 per day. 

These rates are applicable throughout the fiscal year, acknowledging the city’s consistent demand for business travel accommodations. Whether attending conferences in the Loop or meetings in other districts, these average per diem for business travel aim to cover the typical expenses incurred. 

4. Houston, TX

As a major player in the energy sector, Houston attracts numerous business travelers annually. The travel per diem rates for 2025 are set to accommodate the city’s cost structure. The lodging rate is $128 per night, and the M&IE rate is $80 per day. 

These rates are intended to cover expenses in areas such as the downtown business district and the Energy Corridor. Travelers should consider the city’s size and traffic patterns when selecting accommodations to ensure proximity to meeting locations. 

5. San Francisco, CA

San Francisco’s high cost of living is well-documented, and the per diem rates for FY 2025 reflect this reality. The lodging rate is $259 per night, while the M&IE rate is $92 per day. 

These rates are applicable year-round, acknowledging the city’s consistently high expenses. Business travelers should plan accordingly, especially when seeking accommodations near key areas like the Financial District or Silicon Valley. 

6. Washington, D.C.

As the nation’s capital, Washington, D.C. hosts a multitude of government-related business activities. The travel per diem rates for 2025 are set to reflect the city’s cost structure. The lodging rate is $276 per night, and the M&IE rate is $92 per day. 

These rates are designed to cover expenses in areas such as Capitol Hill and downtown D.C. Travelers should be aware of the city’s seasonal fluctuations in accommodation availability, especially during major political events.  

7. Boston, MA

Boston, with its rich history and status as a major educational and business center, has per diem rates for FY 2025 set at $291 per night for lodging and $92 per day for M&IE. These rates are applicable throughout the fiscal year, reflecting the city’s consistent demand for business travel accommodations.

Whether attending conferences in the Seaport District or meetings in Back Bay, these travel per diem rates aim to cover the typical expenses incurred.  

8. Atlanta, GA

Atlanta serves as a major transportation hub and business center in the Southeast. For FY 2025, the average per diem for business travel are set to accommodate the city’s cost structure. The lodging rate is $182 per night, and the M&IE rate is $86 per day. 

These rates are intended to cover expenses in areas such as downtown Atlanta and Buckhead. Travelers should consider the city’s traffic patterns and public transportation options when selecting accommodations.  

9. Seattle, WA

Seattle’s growing tech industry and scenic beauty make it a popular destination for business travelers. The travel per diem rates for 2025 reflect the city’s cost structure. The lodging rate is $188 per night, and the M&IE rate is $92 per day.

Quick Snapshot

Here’s a quick snapshot of the 2025 rates for key cities:

Manage Travel Expenses With itilite

Understanding travel per diem rates is essential for both employers and employees involved in business travel. These rates ensure fair reimbursement, accurate budgeting, and compliance with tax regulations. 

As we move through 2025, staying informed about the current per diem rates will help you plan your travels more effectively and ensure that all expenses are adequately covered.

With itilite travel & expense software, you can automate travel expense tracking, enforce policy compliance, and access exclusive savings through advanced features like budget-to-beat incentives and real-time insights. Elevate your travel program while keeping costs in check. 

Contact itilite to book a free demo today!